Promissory estoppel legitimate expectation prevent state resiling sanctioned industrial subsidies post investment

Where state instrumentalities and financial corporations hold out clear, unequivocal policy assurances and issue formal orders sanctioning capital investment and equipment subsidies, encouraging an enterprise to make substantial capital outlays and maintain continuous commercial production, the doctrine of promissory estoppel and substantive legitimate expectation binds the state to disburse the full sanctioned amounts. State authorities cannot arbitrarily resile from solemn statutory commitments or unilaterally cancel sanctioned incentive disbursements on belated, procedural, or untenable grounds, as arbitrary withdrawal of promised fiscal benefits violates Article 14 of the Constitution. (IFGL Refractories Ltd. v. Orissa State Financial Corporation & Ors. | 2026 INSC 18)